Farmers State Bank v. Schulte

Plaintiff sued defendants to collect on a promissory note signed by defendants. The trial court granted a directed verdict in defendants’ favor, and plaintiff appeals. We reverse and remand.

Jodi Erlinger and her husband, Brad Erlinger, sought to purchase a business known as the Hoffman House from Brad’s parents. The purchase price of the business was $53,000, but after other loans of Brad and Jodi were consolidated with this loan, the total loan amount became $70,500. This loan, as evidenced by “note #1,” indicated that security for the loan was a mortgage on Hoffman House. There was also…